AGEM
Exchange: Stock Price Percent Change Index
Symbol At Month End Prior Prior Contri-
(Currency) Oct-09 Sep-09 Oct-08 Period Year bution
Ainsworth Game ASX: AGI (AU$) 0.17 0.13 0.08 26.92 120.00 0.08
Technology
Aristocrat ASX: ALL (AU$) 4.52 5.25 3.81 (13.90) 18.64 (1.36)
Technologies
Astro Corp. Taiwan: 3064 68.10 73.00 50.40 (6.71) 35.12 (0.06)
(NT$)
Bally NYSE: BYI
Technologies (US$) 39.39 38.37 22.15 2.66 77.83 0.34
Elixir Gaming AMEX: EGT
Technologies (US$) 0.28 0.28 0.12 - 133.33 -
GameTech Nasdaq: GMTC
International (US$) 1.33 1.71 2.36 (22.22) (43.64) (0.02)
Gaming Partners Nasdaq: GPIC
International (US$) 4.51 5.80 6.89 (22.24) (34.54) (0.05)
Global Cash NYSE: GCA (US$) 6.33 7.31 2.82 (13.41) 124.47 (0.36)
Access
IGT NYSE: IGT (US$) 17.84 21.48 14.00 (16.95) 27.43 (5.23)
INTRALOT S.A. ATHEX: INLOT 4.37 4.71 4.00 (7.22) 9.25 (0.37)
(EUR)
Konami NYSE: KNM (US$) 18.54 20.33 17.80 (8.80) 4.16 (1.27)
Lottomatica MILAN: LTO.MI
(GTECH) (EUR) 14.52 15.31 18.25 (5.16) (20.42) (0.76)
Multimedia Nasdaq: MGAM 4.91 5.12 3.02 (4.10) 62.58 (0.03)
Games (US$)
Shuffle Master Nasdaq: SHFL 7.81 9.42 3.86 (17.09) 102.33 (0.42)
(US$)
Transact Nasdaq: TACT 5.67 5.30 7.00 6.98 (19.00) 0.02
Technologies (US$)
Wells-Gardner AMEX: WGA (US$) 1.92 1.90 0.73 1.05 163.01 0.00
Electronics
WMS Industries NYSE: WMS (US$) 39.98 44.56 25.00 (10.28) 59.92 (1.41)
Change in Index
Value (10.90)
AGEM: September
2009 116.78
AGEM: October
2009 105.88
ANALYSIS PROVIDED BY UNION GAMING GROUP
The AGEM Index 9% decline is directionally consistent with the broader
markets' performance in October (S&P 500 lost 2%). Gaming's higher relative
beta explains the index's typical outperformance/underperformance during
market strength/weakness, respectively. The suppliers' decline in October
is underscored by numerous events that collectively concerned investors
regarding the timing of an eventual recovery in the sector. In particular
Wynn Resorts, Las Vegas Sands, Boyd Gaming, and Harrah's reported 3Q
results that were indicative of ongoing weakness in Las Vegas, without much
evidence of stabilization/recovery. On the other hand, MGM MIRAGE numbers
demonstrated stability in pricing/volumes, bolstered by market share gains.
While the market was absorbing this data, US Airways announced a capacity
reduction to Las Vegas despite data during the month (and into November)
that suggests volume declines are less bad in Vegas and better in some
regional casino markets. WMS fiscal 1Q results were solid in the context of
a domestic replacement trough, but management's financial guidance
concerned investors who now place more risk on the back fiscal half of
fiscal 2010. This impacted sentiment on the rest of the gaming suppliers
during October despite results from Bally that were notable and saw an
increase in financial guidance.
A number of other events round out October, most favorable-related to
prospective gaming expansion as states look to address budgetary issues.
These include additional slot licenses in California, tables advancing in
Pennsylvania, Delaware considering more casinos, Minnesota considering a
referendum for slots, Illinois' 10th license inching forward, Rhode Island
getting atypical support from the Governor for more casinos, Florida
approving electronic tables, Michigan looking to advance racinos, and Maine
attempting to expand.
The AGEM Index
The Association of Gaming Equipment Manufacturers (AGEM) produces the
monthly AGEM Index that comprises 17 global gaming suppliers throughout the
world. A total of 12 suppliers are based in the United States and are
listed on the NYSE, Nasdaq or AMEX, while two trade on the Australian
exchange, one supplier trades on the Athens exchange, one trade on the
Milan exchange, and another trades on the Taiwan OTC exchange. The index is
computed based on the month-end stock price (adjusted for dividends and
splits) of each company and weighted based on approximation of market
capitalization. Market capitalizations for manufacturers trading on foreign
exchanges have been converted to US dollar equivalents as of month-end for
comparability purposes. The AGEM Index is based on a 100-point value as of
January 2005.
About AGEM
AGEM is an international trade association representing manufacturers and
suppliers of electronic gaming devices, systems, table games, key
components and support products and services for the gaming industry. The
Association works to further the interests of gaming equipment suppliers
throughout the world. Through political action, tradeshow partnerships,
information dissemination and good corporate citizenship, the members of
AGEM work together to create benefits for every company within the
organization. Together, AGEM has assisted regulatory commissions and
participated in the legislative process to solve problems and create a
positive business environment.
AGEM Membership Roster
The current AGEM membership roster, 81 strong, is a who's who of the
supplier segment of the global gaming industry: AGEM Gold Members:
Aristocrat Technologies, Aruze Gaming America, Austrian Gaming Industries,
Bally Technologies, GTECH/Atronic/Spielo, International Game Technology
(IGT), INTRALOT S.A., Konami Gaming and WMS Gaming. AGEM Silver Members: AC
Coin & Slot, Action Gaming, Casino Technology, Interblock USA, JCM Global,
MEI, Multimedia Games, Octavian International, Shuffle Master, Suzo-Happ
Group, TCSJohnHuxley and Wells-Gardner Electronics. AGEM Bronze Members:
Ainsworth Game Technology, Astro Corp., Cadillac Jack, Cammegh Limited,
CashCode / Crane Payment Solutions, Diamond Game, Digital Display Group,
Euro Games Technology (EGT), GameTech International, Gaming Support,
Incredible Technologies, Jumbo Technology, KGM Gaming, MCA Processing,
Modern Gaming, Rocket Gaming Systems and Summit Gaming. AGEM Associate
Members: CMYK Creative, Cole Industries, Cybertec Gaming Systems,
DynaGraphic Printing, Elite Casino Products, Esterline Advanced Input
Systems, FutureLogic, Gaming Partners International, Gary Platt
Manufacturing, Global Cash Access, Global Gaming Group (G3), Grand
Products, Greenberg Traurig LLP, Howard & Howard, IdeaWork Studios, IDX,
Intel, IPS, James Industries, Kreller Group, KSK, Lewis & Roca, Masterpiece
Advertising, MC2, Mikohn Signs and Graphics, Money Controls, Nanoptix,
Paokai Electronic Enterprise Co., Proforma GPS, Regulatory Management
Counselors, Sanmina-SCI, Strategy9, Talent Associates, Tgraphics/Outpost
Productions, The Bright Group, 3M Touch Systems, Tournament One, TMX, Trade
Show Fabrications, TransAct Technologies, Veridocs, Wrex Products and Young
Electric Sign Company (YESCO).
AGEM Index and Overview
The AGEM index and overview is prepared by Applied Analysis (AA). AA is a
Nevada-based advisory services firm providing a wide range of consultation
services for public and private entities. The company utilizes extensive
experience in economics, information technology and finance to provide a
wide range of services, including urban economic consulting, financial
advisory services, market analysis, public policy analysis, hospitality
industry and gaming consulting and information system and technology
consulting.
Industry Analysis
Industry Analysis is prepared by Union Gaming Group (UGG). UGG is an
independent research firm, government and industry advisor, focusing on the
global gaming business. UGG provides research, access and advisory services
and offers varying levels of research products and services, which
capitalize on UGG's relationships with corporate managements, governments,
and other parties relevant to the global gaming business.
Contact Information: Contact for AGEM release: Marcus Prater AGEM Executive Director (702) 812-6932